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Croats could buy gold worth as much as one billion euros by 2025

Davor Žic, direktor marketinga i razvoja u Auro Domusu
Davor Žic, direktor marketinga i razvoja u Auro Domusu

The foundations of Auro Domus were laid in 1916 with the training of Renato Dessard as a master goldsmith under the then most esteemed Rijeka goldsmith Rodolfo Giraldi and the opening of the first Dessard goldsmith shop in 1929 in Opatija. Leadership was then taken over by son Ivo and grandson Armin, expanding the business to other cities, and in 2010, Loris Dessardo, the fourth generation of the family, founded the company Auro Domus. Since then, a retail network of about fifty branches has been built in Croatia, and in 2017, the first branch of The Bank of Gold, specialized in investment precious metals, was opened. In 2023, the first Auro Domus investment gold center Goldman Graff was opened in Ljubljana. Davor Žic, the marketing and development director at Auro Domus, announces further investments.

How did you become the largest professional gold retail chain in Croatia in fifteen years?

– We have consistently built trust among citizens by continuously adapting our services to their needs. Our goal has always been to provide clients with solutions for all financial situations. We started with branches for gold buying and gradually expanded our offerings, first with investment gold products, and in recent years with the increasingly popular pawn service. Clients have recognized that Auro Domus offers them the fastest and most profitable way to exchange gold for cash, either through sales with gold buying services or pawning, but also the other way around: to buy investment gold at the best price on the market. Being a market leader, with the highest presence across Croatia and the largest volume in gold buying, allows us to offer more favorable prices in investment gold than other market participants.

Why is investing in gold desirable for citizens?

– Gold is traditionally considered a safe haven in times of uncertainty. Investing in it protects the value of assets from inflation, currency depreciation, and global instabilities such as wars. For citizens, this means they can preserve purchasing power and diversify their savings. In times of recession and geopolitical conflicts, investors turn to gold as its value rises while the value of fiat currencies declines. Additionally, gold is a long-term reliable and profitable investment and is easily transferable and liquid. An ounce has reached a historical value of 3,220 US dollars, which is a 35% increase in the last year and even a 665% increase in the last twenty years, bringing substantial profits to gold investors.

Why is saving in gold becoming increasingly popular?

– In the world, especially in Europe, gold has been traditionally invested in for generations. Croatia has not been in that position due to high taxes on gold, which were abolished upon joining the European Union in 2013. Since then, it has become increasingly interesting to Croats, but we are still below the average of other countries like Austria or Germany, where almost every family has some savings in gold. With the growing awareness of the benefits of investing in gold, it is also a fact that alternative forms of investment are slowly losing their attractiveness here. Real estate is becoming more expensive, and interest rates on savings are decreasing, so due to inflation, you are actually losing money. With investment gold, the situation is completely opposite. By saving in gold, the value of your savings gradually increases, and one day when you want to cash in your gold, you can do so anywhere in the world. Historically, gold has a stable growth trend of about nine percent per year, and the chances of prices suddenly dropping are very low. It is a myth that only the wealthy can invest in gold. Those who do not have savings but want to invest can do so by setting aside one hundred, two hundred, or five hundred euros from their salary each month, which is approximately the cost of smaller bars – one, two, or five grams.

What is the state of the gold market in Croatia?

– The gold market in Croatia is constantly growing. Last year, Croats spent more than 350 million euros on investment gold compared to fifty million euros six years prior. According to current data from the first quarter, we expect record results and a quadrupling of turnover in the current year. It is estimated that Croats could buy investment gold worth as much as one billion euros by 2025.

What are the further plans?

– Increased demand for gold opens up space for further growth and expansion. Auro Domus included the business of the Exclusive Change chain in its network last year, expanding its branches into leading shopping centers in Croatia. Thus, the services of gold buying, pawning, and selling investment gold have become more accessible to citizens. The conversion of these spaces into exclusive branches of The Bank of Gold, which offer a higher level of service to clients, is underway. Additionally, at the beginning of the year, Auro Domus was joined by the business of Goldman Graff, which offers buying and storage services for precious metals in offices in Zagreb, Rijeka, and Ljubljana. We are also continuing to digitize services and educate the market to make gold even more accessible to the wider population.

Content created in collaboration with Auro Domus.